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Yield curve a. Draw the actual yield curve using the daily treasury yield curve rates on 09/03/13. Note: Use maturities ranging from 1 to 30

Yield curve

a. Draw the actual yield curve using the daily treasury yield curve rates on 09/03/13.

Note: Use maturities ranging from 1 to 30 yrs. (10 points)

b. Interpret the shape of the yield curve. What does it tell you about the short term rates in the future and the future state of the economy (assuming expectation theory is correct). (10 points)

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